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Investigating the Ethical Concerns Associated with Corporate
Investigating the Ethical Concerns Associated with Corporate Finance and How to Manage them
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INTRODUCTION
Background of the Study
Investors all over the world are becoming more interested in ethical finance. Research reveals that the growth of ethical or Socially Responsible Investment (SRI) continues to outperform that of traditional investment techniques (Chelawat & Trivedi, 2013). For instance, at the beginning of 2010, SRI assets surpassed $3 trillion, an increment of roughly 34% in five years, compared to barely 3% for traditionally managed assets. Also, SRI assets increased by 13% during the recession, compared to 1% for traditional, professionally managed assets (Chelawat & Trivedi, 2013). The author further adds that a growing number of investment consultants and analysts acknowledge the significance of ethics and integrate them into investment decision-making. Marantika et al. (2020) further reveal financial decisions impact company value in corporate finance, and they are influenced by corporate manager decisions about the uptake, distribution, and allocation of financial resources, all while remaining under the control of corporate governance. Thus, corporate finance has become more important in terms of business valuation, which has a positive impact on the generation of value. Notably, corporate finance refers to the financial decisions made by corporate executives to improve the effectiveness of the company’s financial management (Marantika et al., 2020).
Research reveals that the underdeveloped nature of banking systems and financial markets of many nations (mainly in frontier and emerging markets) has led to alternative investment financing options, such as microfinance firms (Sahut et al., 2018). To serve this niche, some of the major international banks have partnered with providers of local microcredit to demonstrate their commitment to social development and make a profit. Banks are progressively rethinking their actions and requirements to finance projects and businesses in developing nations. In times of economic crises, investment funds tied to social commitment goals demonstrate more consistency in their benefits than funds whose main goal is profit, as Gangi and Trotta (2015) point out. According to Sahut et al. (2018), this implies that the economic and moral values associated with ethics provide balance and solidity to corporate finance during profit-seeking in the markets. Despite this fact, to the best of my knowledge, researchers have focused very little effort on investigating the ethical concerns in corporate finance. This study aims to fill this research gap by investigating the ethical concerns in corporate finance and defining ways to manage them so that corporate finance can continue enjoying the benefits of ethics in the financial industry.
Statement of the Problem
According to the literature review, ethical finance and socially responsible investing research have been focused on a few areas. While certain significant topics, such as the financial performance of ethical funds and indices, have gotten sufficient attention from scholars, many others require more investigation (Chelawat & Trivedi, 2013). One of these areas is ethical issues associated with corporate finance. Sahut et al. (2018) reveal that an in-depth investigation of the topic of ethical finance and governance is particularly pertinent owing to the increasing number and severity of corporate fraud episodes. The WorldCom, Lehman Brothers, and Enron scandals have served to undermine investors’ and public confidence. On a different note, Melé et al. (2017) urge that we must retain the future before it is too late by reversing the financialization procedure and ensuring that finance sector operates in the interest of human dignity. To achieve this, this study aims to uncover the ethical concerns associated with corporate finance.
Research Aims and Objectives
Following the recent financial crises and its ramifications, it has become more important than ever to consider the relationship between finance and accounting, means of integrating ethics and efficacy, and how to empower and to motivate finance practitioners to commit to fairness, to justice, and increased understanding, as well as to enhance their integrity (Melé et al., 2017). The primary goal of this study is to uncover ethical concerns prevalent in corporate finance and define how they can be managed. The following specific objectives will guide the study to achieve this goal.
To determine how ethics affect corporate financial performance.
To determine ethical concerns in corporate finance.
To define ways of managing ethical concerns associated with corporate finance.
Research Questions
The following research questions have been formulated from the research aims and objectives to guide the study.
What are the effects of ethics on corporate financial performance?
What are the ethical concerns in corporate finance?
How can ethical concerns associated with corporate finance be managed?
LITERATURE REVIEW
This section covers the literature review related to the topic under study. The goal of this section is to provide the reader as well as the researcher with a comprehensive understanding of the research topic. The section covers the concept of corporate finance and ethics. It further discusses ethics in finance.
Corporate Finance
Corporate finance is an important aspect of any company in today’s economic world. It is the department in charge of how firms and organizations manage their funding sources, accounting, capital structuring, and investment decisions. Corporate finance encompasses a wide variety of activities, ranging from capital investment decisions to investment banking. For instance, it is concerned with increasing shareholders’ value through financial planning, dividend distribution, and other tactics (Ethics in Corporate Finance, 2022). They are also in charge of taxation and capital investments. Furthermore, the department regulates managers’ behavior to improve the worth of the firm to shareholders without being motivated by self-interest. It also provides analyses and methods for allocating financial resources.
Ethics and Corporate Ethics
Ethics refers to a person’s collection of moral principles. The role of ethics is to determine what is wrong and what is right. It’s also known as a code of conduct, which most individuals do not want to break. Ethics exist to assist us and provide advice for our actions that have an impact on others (Ethics in Corporate Finance, 2022). Morals, standards, and values are all important aspects of ethics. People will act unethically if they quit following their own morals, which might result in adverse effects such as job loss, jail time, large fines, or reputational damage. Eisses (2017) defines corporate ethics as the sense of ethical content in an organization’s procedures and practices by its members.
If a behavior does not conform to a high standard or if it is morally wrong, it is termed unethical. A perfect example of unethical behavior in a business is insider trading. Businesses must ensure that their employees embrace honesty, fairness, and respect to avoid this. Even if governments and regulators use legislative reform to prevent misconduct, it is still not enough to ensure that a company is totally ethical. This is the main reason why businesses must build an ethical framework and a culture of integrity. Firms require a well-developed set of ethical guidelines to assist in analyzing decisions and their potential conduct from an ethical perspective. Since ethical issues in corporate finance have been largely ignored by scholars, it is important to uncover the unethical issues in this sector. These issues can serve as a guide for developing a set of ethical guidelines to assist in analyzing decisions and potential conduct of financial institutions from an ethical perspective.
Ethics in Finance
Research reveals that accounting and finance are technical tools with a close connection to ethics (Melé et al., 2017). The South African divestment movement is an excellent example of how ethics ties in with corporate finance. When South Africam(SA) was under the segregationist apartheid system in the mid-1980s, American university students attacked American companies doing business in SA in an attempt to overthrow it. Divestment campaign’s participants lobbied their own institutions to divest from those corporations. The plan was to destabilize South Africa’s finances to the point that it would be forced to change, and the strategy was a success. Over 200 American companies had divested from SA by 1990, taking approximately $1 billion worth of investment from the nation’s economy. Those businesses had clearly received the message from the student-led university divestment and chose to conduct business elsewhere. The corporations’ activities represented an ethical use of financial capital, even though their motivation was purely financial. There are now publicly available lists of companies that exemplify SRI. Companies with strong environmental policies, social responsibility, and governance are more likely to be included on the list (Ethics in Corporate Finance, 2022).
While explaining the relationship between corporate finance and ethics, Melé et al. (2017) urge that accounting and finance cannot work without, and trust cannot be achieved without ethics. Ethics in finance is also built on a culture of integrity. Notably, ethics covers actions, anticipated repercussions, and people participating in any human activity, with or without their virtues (Melé et al., 2017). In the field of finance, the definition of ethics relates to the proper use of money, whether it is one’s own or someone else’s money. Christen (2022) further urge that dealing with a company’s financial resources entails a lot of risks and decision-making, which presents many opportunities for unethical practices. Government and regulator regulatory improvements are insufficient to ensure that a corporation is entirely ethical; therefore, firms require a created set of standards to analyze actions and evaluate prospective conduct from an ethical standpoint (Christen, 2022). In order to establish such a set of standards in corporate finance, it is vital to understand the most prevalent unethical practices in this sector. This study will uncover the ethical issues associated with corporate finance.
Investors, customers, and the general public have been known to reject and boycott businesses that violate ethical standards. However, businesses that adhere to ethical standards reap substantial financial rewards. Therefore, individuals involved in corporate finance in the contemporary world must have a strong basis in ethics (Ethics in Corporate Finance, 2022). Ethics in finance is associated with various benefits, including assisting in avoiding legal issues, maintaining a good reputation with customers and high consumer confidence, minimizing financial risks, and allowing an organization to enjoy a positive corporate culture and a motivated and dedicated ethical workforce. Ethics also allow financial institutions to understand their social license to operate and promote social responsibility (The Importance of Ethics in Finance, 2022).
METHODOLOGYIntroduction
This section includes an outline of the research methods employed in this study. Various concepts are covered, including research design, search method, and data gathering and analysis procedures.
Research Design
In this research, I employed a literature-based approach. Newman and Gough (2020) reveal that literature analysis is used to construct arguments based on what a researcher already knows and does not know about a subject. To determine how ethics affect corporate financial performance, the ethical concerns in corporate finance, and determine ways of managing ethical concerns associated with corporate finance, I used a meta-analysis and full systematic literature review. A systematic literature review is a research strategy for identifying and critically evaluating relevant research and gathering and analyzing data from previous studies (Snyder, 2019). On the other hand, a meta-analysis entails merging results from several researchers to compare and emphasize links, patterns, and conflicts that emerge in the context of various studies on the same topic (Snyder, 2019).
Search Strategy and Selection Criteria
I used recognized databases such as EbscoHost, Google Scholar, ProQuest, Sage publications, and Science Direct to select the most relevant publications for review. Several search phrases were used to find relevant data sources. “Effects of ethics on corporate financial performance,” “corporate finance and ethics,” “managing ethical issues in corporate finance,” and “ethical issues and corporate finance” are among them. I also refined the search results using Boolean operators such as NOT, AND, OR, and truncation and wildcard techniques. Also, I used an ancestry search to locate potential sources. This entailed keeping track of all relevant footnotes and cited references and incorporating them in the review. To discover relevant and reliable sources of data, I devised a set of exclusion and inclusion criteria.
Based on the inclusion criterion, I only reviewed articles on corporate finance and ethics. I reviewed studies published in the last ten years to ensure that only the most up-to-date material was included in the report. Also, I only included publications written in English to ensure that the data sources were understood. In my analysis, I only included peer-reviewed and scholarly journal papers. Furthermore, I only considered papers that were published in full text and had free access. This was done to ensure that full information regarding the study under consideration was readily available. All studies that did not match the criterion for inclusion were excluded.
After preliminary screening, I retrieved all of the studies that were deemed relevant and trustworthy for this research. I prepared a data extraction sheet, which included publication information as well as study parameters such as sample size, location, design, and results. The risk of bias for the papers selected for review was established by focusing on methodological issues such as the research design’s adequacy.
Data Analysis Procedure
I performed a thematic and content analysis of the secondary data to address the three research questions. I started data analysis by performing thematic analysis to amass evidence from the different sources and generate themes. I then performed content analysis to critically analyze the generated themes. The findings are resented in the next section.
RESEARCH FINDINGSIntroduction
The goal of this research was three-fold. First, the study aimed to determine the ethical concerns in corporate finance. Secondly, this study sought to determine how ethics affect corporate financial performance. Lastly, the study sought to uncover practical ways of managing ethical concerns associated with corporate finance. This section presents the study findings. The research questions guided the presentation of findings.
RQ1: What are the effects of ethics on corporate financial performance?
One of the effects of ethics on corporate financial performance is the validation of return on investments. Usually, corporate finance relies on venture capital funding and the reinvestments of own capital, which requires ethical conduct. As such, ethics helps keep accurate records of the long-term success of corporate finance. By keeping the records, the corporate finance can announce the returns, which are the products of the fraudulent accounting that may lead to issues that rises to ultimate hurt on the performance (Kim & Li, 2021). Therefore, ethical practices help corporate finance avoid negative financial results and legal challenges upon discovering unethical conduct. As a result, the company can prove the consistency of the return on investments by focusing on the effective operation by limiting the distractions of the negative public perception and bad press that may hurt the business.
Ethics also assists in improving the employee’s morale. In the corporate finance department, employees prefer working where they get treated with dignity, fairness, and respect. When corporate finance uses a high standard of business conduct, employees will work with the perception of moral and ethical treatment (Landi & Sciarelli, 2018). In return, the employees accord the customers utmost respect while delivering the services. As such, the customer’s loyalty gets generated, leading to the achievement of more market share, thereby creating business success.
Ethics also assist in minimizing financial risks. The ethics in corporate finance minimizes the financial risk since the financial managers and operator works with integrity and moral uprightness as defined by the ethical values. Also, ethics enables the controllers to develop accounting procedures principled in a particular dimension characterized by the internal control for credibility (Landi & Sciarelli, 2018). Therefore, the financial controller behaves ethically in both the professional ad private life leading to the minimization of financial risks like thefts and miscalculations. Furthermore, through ethical conduct, the worker understands the social license that operates and promotes social responsibility in the management of finance documentation.
RQ2: What are the ethical concerns in corporate finance?
One of the most common ethical issues in finance is insider trading. Insider trading entails the purchase or sale of stocks and securities based on information that has been shared but is not publicly available (Ethics in Corporate Finance, 2022). An insider is typically someone in a business management position of a corporate entity or an individual with whom they share information for their personal gain. Insider trading in corporate finance is motivated by the opportunity of making a large profit using information not yet made public. Such information provides the trader with a significant competitive advantage over other traders in the same security.
Another ethical concern in corporate finance is fraud. Melé et al. (2017) claim that frauds have been reported in corporate finance, with the most commonly reported causes being ineffective corporate governance and control mechanisms, inefficient boards, accounting irregularities, distorted incentive schemes, auditor failures, dysfunctional behavior of managers, and a lack of a sound ethical tone at the top.
Another ethical issue in corporate finance is a lack of professionalism. In corporate finance, it is expected that professionalism complies with all applicable regulations without misinterpretation and misconduct (Bagry, 2022). All dealings/transactions should be conducted with transparency and integrity. Financial managers must also operate in the best interests of their clients and employers when conflicts of interest arise. Another aspect of your job is to protect your own and your employer’s reputation. Some argue that the risk of embarrassment and reputational damage is enough to deter financial executives from acting unethically. According to industry experts, more regulation is required since financial ethics cannot overcome temptation (Bagry, 2022).
Other ethical issues in corporate finance include cheating clients about their trading profits, misuse of customers’ funds for personal gain, corruption and larceny, unauthorized translations, and mispricing customer trades.
RQ3: How can ethical concerns associated with corporate finance be managed?
One way to manage the ethical concerns associated with corporate finance is by adhering to the ethics codified in corporate finance. A significant number of American Companies and financial markets have adopted ethical codes, which are usually issued by regulatory authorities such as the Securities and Exchange Commission (SEC), which is one of the leading securities industry regulators. This agency is in charge of enforcing federal laws and regulations that govern the ethical behavior of organizations and individuals in the securities sector. Furthermore, a number of firms have established their own ethics departments to self-regulate their financial behavior.
Another way of managing ethical concerns is through the promotion of good management. Melé et al. (2017) urge that most unethical decisions and financial scandals have taken place due to pressure to achieve immediate results. According to the author, such decisions could be avoided with effective management.
Another way of managing ethical issues in corporate finance is by promoting professionalism. Lail et al. (2015) urge that even though reforms should be the first step in restoring financial reporting systems, virtuous professionalism is required to restore corporate finance.
Another way to manage ethical issues in corporate finance is by imposing legal liability on professionals. According to Alzola (2016), among the causes of increasing corporate scandals and recent financial crises is the inability of professional gatekeepers to detect and disrupt corporate misbehavior. Alzola (2016) further urges that the solution to this problem is imposing legal liability on professionals.
CONLUSION AND RECOMMENDATIONConclusion
The first goal of this study was to determine the effects of ethics on corporate financial performance. Findings revealed that ethical practices help corporate finance avoid negative financial results and legal challenges upon discovering unethical conduct. As a result, the company can prove the consistency of the return on investments by focusing on the effective operation by limiting the distractions of the negative public perception and bad press that may hurt the business. Also, findings revealed that ethics assists in improving the employee’s morale and assist in minimizing financial risks.
Another goal of the study was to identify the ethical concerns in corporate finance. Among the identified ethical issues is insider trading. This is the purchase or sale of stocks and securities based on information that has been shared but is not publicly available. Fraud is another ethical issue in corporate finance. Other ethical issues identified include lack of professionalism, cheating clients about their trading profits, misuse of customers’ funds for personal gain, corruption and larceny, unauthorized translations, and mispricing customer trades.
Lastly, this study sought to uncover practical ways of managing ethical issues in corporate finance. One way to manage the ethical concerns associated with corporate finance is by adhering to the ethics codified in corporate finance. Other ways of managing ethical concerns are through the promotion of good management and imposing legal liability on professionals.
Limitations of the Study
There were a few drawbacks to this study. To begin with, the study was restricted to the use of secondary data, preventing the researcher from obtaining primary data to supplement the findings from the secondary data. Besides, the fact that the researcher was responsible for data extraction, processing, and interpretation, increased the risk of researcher’s bias. However, to deal with this limitation, the researcher cited all the materials from which data were extracted.
Recommendations
Corporate finance should adhere to the ethics codified in corporate finance, practice good management, promote professionalism, and impose legal liability on professionals. Since this study has focused on ethical issues in corporate finance and how to manage them, future scholars should explore guidelines to assist corporate finance in analyzing decisions and their potential conduct from an ethical perspective.
References
Alzola, M. (2017). Beware of the watchdog: Rethinking the normative justification of gatekeeper liability. Journal of business ethics, 140(4), 705-721. https://doi.org/10.1007/s10551-017-3460-3Chelawat, C. A., & Trivedi, I. V. (2013). Ethical finance: Trends and emerging issues for research. International Journal of Business Ethics in Developing Economies, 2, 2.
Chelawat, C. A., & Trivedi, I. V. (2013). Ethical finance: Trends and emerging issues for research. International Journal of Business Ethics in Developing Economies, 2, 2.
Christen, T. (2022). Corporate Finance in relation to Ethics. Retrieved 18 April 2022, from https://www.gestiopolis.com/corporate-finance-in-relation-to-ethics/.
Eisses, M. T. (2017). The effect of corporate ethics on corporate financial performance focussing on internal stakeholders.
Ethics in Corporate Finance | UT Permian Basin Online. The University of Texas Permian Basin | UTPB. (2022). Retrieved 18 April 2022, from https://online.utpb.edu/about-us/articles/business/ethics-in-corporate-finance/.
Gangi, F., & Trotta, C. (2015). The ethical finance as a response to the financial crises: An empirical survey of European SRFs performance. Journal of Management & Governance, 19(2), 371-394. https://doi.org/10.1007/s10997-013-9264-7Kim, S., & Li, Z. F. (2021). Understanding the impact of ESG practices in corporate finance. Sustainability, 13(7), 3746. https://www.mdpi.com/1050564Lail, B., MacGregor, J., Marcum, J., & Stuebs, M. (2017). Virtuous professionalism in accountants to avoid fraud and to restore financial reporting. Journal of business ethics, 140(4), 687-704. https://doi.org/10.1007/s10551-015-2875-yLandi, G., & Sciarelli, M. (2018). Towards a more ethical market: the impact of ESG rating on corporate financial performance. Social Responsibility Journal. https://www.emerald.com/insight/content/doi/10.1108/SRJ-11-2017-0254/full/htmlMarantika, A., Rathod, H. S., Chauhan, R., Putri, L. T., & Maseleno, A. (2020). Ethics in Finance, Financial Globalization, and Stakeholder Responsibility: New Concept of Corporate Finance. International Journal of Psychosocial Rehabilitation, 24(01), 1556-1563.
Melé, D., Rosanas, J. M., & Fontrodona, J. (2017). Ethics in finance and accounting: Editorial introduction. Journal of Business Ethics, 140(4), 609-613.
Newman, M., & Gough, D. (2020). Systematic reviews in educational research: Methodology, perspectives, and application. Systematic reviews in educational research, pp.3-22.
Sahut, J. M., Saadi, S., Switzer, L., & Teulon, F. (2018). Ethical finance and governance. Journal of Applied Accounting Research.
Sifah, D. (2009). Ethics: An essential prerequisite of the financial system. Finance Bien Commun, (1), 46-57.
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of business research, 104, pp.333-339. https://doi.org/10.1016/j.jbusres.2019.07.039The Importance of Ethics in Finance | Build a Culture of Business Integrity. Kelley School of Business Executive Education. (2022). Retrieved 18 April 2022, from https://execed.kelley.iu.edu/the-importance-of-ethics-in-finance/.
Investigating the Effects of Gun Control Measures on the Level of Violence Crimes in the US
Investigating the Effects of Gun Control Measures on the Level of Violence Crimes in the US
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AbstractGun violence is considered a national public health issue of concern that exacts a significant toll on American society. Each day, a total of 105 lives are lost, and approximately 2300 people receive treatment for gun-related violence in the US. Gun-related injuries are quite lethal and account for about 7.1 percent of premature deaths in the US. Besides the significant number of killings and injuries associated with gun violence, many families in the US must deal with the severe consequences of gun violence. Following the severe impacts of private gun ownership, the US established regulations to reduce cases of gun violence. However, it is yet to be established whether these gun control measures have any impact on violent crimes in the US. The main objective of this research paper was to uncover the effects of gun control measures on the level of violent crimes in the US. A literature-based design was adopted for this study. A meta-analysis and complete systematic literature review were undertaken to define how gun control measures have impacted the level of violent crimes in the US. Findings revealed that studies that examined the trend of the cases of violent crimes showed increasing trends even after years when most gun control legislation was enacted. However, for studies that compared the cases of violent crimes between nations with strict and non-strict laws, findings established that countries with stricter gun control rules had fewer cases of violent crimes. Thus, it has been concluded that stricter gun control measures effectively reduce the levels of violent crimes in the US.
Keywords: Gun Violence, Gun-related Injuries, Gun Control Measures, Violence Crimes, Stricter Gun Control Measures
Table of Contents
TOC o “1-3” h z u Abstract PAGEREF _Toc119523423 h 21.INTRODUCTION PAGEREF _Toc119523424 h 51.1 Background of Study PAGEREF _Toc119523425 h 51.2 Statement of Problem PAGEREF _Toc119523426 h 61.3 Purpose of Study PAGEREF _Toc119523427 h 61.4 Research Aims and Objectives PAGEREF _Toc119523428 h 61.5 Research Question PAGEREF _Toc119523429 h 62. LITERATURE REVIEW PAGEREF _Toc119523430 h 62.1 Introduction PAGEREF _Toc119523431 h 62.2 Types of Gun Violence PAGEREF _Toc119523432 h 62.2.1 Homicide PAGEREF _Toc119523433 h 62.2.3 Unintentional Death and Injury PAGEREF _Toc119523434 h 72.2.3 Violent Crime PAGEREF _Toc119523435 h 72.2.4 Attempted Suicide and Suicide PAGEREF _Toc119523436 h 72.2.6 Mass Shootings PAGEREF _Toc119523437 h 82.3 Epidemiology of Firearm Injury PAGEREF _Toc119523438 h 82.4 Gun Control Legislations in the US PAGEREF _Toc119523439 h 102.4.1 National Firearms Act (NFA) (1934) PAGEREF _Toc119523440 h 102.4.2 Federal Firearms Act (FFA) (1938) PAGEREF _Toc119523441 h 102.4.2 Omnibus Crime Control and Safe Streets Act of 1968 PAGEREF _Toc119523442 h 102.4.4 Firearm Owners Protection Act of 1986 PAGEREF _Toc119523443 h 112.4.5 Undetectable Firearms Act of 1988 PAGEREF _Toc119523444 h 112.4.6 Gun-Free School Zones Act of 1990 PAGEREF _Toc119523445 h 112.4.7 Brady Handgun Violence Prevention Act of 1993 PAGEREF _Toc119523446 h 112.4.8 Federal Assault Weapons Ban (1994–2004) PAGEREF _Toc119523447 h 112.4.9 Law Enforcement Officers Safety Act of 2004 PAGEREF _Toc119523448 h 112.4.10 Protection of Lawful Commerce in Arms Act of 2005 PAGEREF _Toc119523449 h 112.4.11 Bipartisan Safer Communities Act of 2022 PAGEREF _Toc119523450 h 123.METHODOLOGY PAGEREF _Toc119523451 h 123.1 Introduction PAGEREF _Toc119523452 h 123.2 Research Philosophy PAGEREF _Toc119523453 h 123.3 Research Design PAGEREF _Toc119523454 h 123.4 Search Strategy and Selection Criteria PAGEREF _Toc119523455 h 123.5 Inclusion Criteria PAGEREF _Toc119523456 h 133.6 Exclusion Criteria PAGEREF _Toc119523457 h 134.RESEARCH FINDINGS AND DISCUSSION PAGEREF _Toc119523458 h 134.1 Introduction PAGEREF _Toc119523459 h 134.2 Presentation of Findings PAGEREF _Toc119523460 h 145.CONCLUSION AND RECOMMENDATIONS PAGEREF _Toc119523461 h 155.1 Summary and Conclusion PAGEREF _Toc119523462 h 155.2 Limitations of Study PAGEREF _Toc119523463 h 165.3 Recommendations PAGEREF _Toc119523464 h 17
INTRODUCTIONBackground of the StudyPrivate gun ownership in America is much higher than that of other Western nations. Supporting this statement, Gresham and Demuth (2020) urge that in contrast to other Western countries, where the average gun ownership is about 25 guns per 100 citizens, the US has about 93 guns per 100 citizens. Jehan et al. (2018) further add that the US is ranked position one in the list of nations with the most privately owned guns. The increased prevalence of private gun ownership in the US has led to increased gun violence in America. Examples of gun violence include violent crime, suicide, homicide, attempted suicide, and unintentional injury or death (Sheats et al., 2022). Gun violence is considered a national public health issue of concern that puts a significant toll on American society (Goldstein et al., 2019). Each day, a total of 105 lives are lost, and approximately 2300 people receive treatment for gun-related violence in the US (AAFP, 2022).
Most Americans die or get gun-related injuries in self-directed violence, interpersonal violence, unintended injuries, legal interventions, and acts where the intent cannot be established (Fowler et al., 2015). Also, gun violence is considered the main cause of premature death in the United States (Jehan et al., 2018). On the same note, Fowler et al. (2015) urge that gun-related injuries are quite lethal and account for about 7.1 percent of premature deaths in the US. Resnick et al. (2017) further claim that the effect of gun-related injuries on human life in the US is staggering. Over 85,000 gun-related injuries occurred in the US in 2015, and in 2016 over 38,000 deaths were reported (AAFP, 2022). Avraham et al. (2018) revealed that between 2003 and 2012, more than 131,000 people in the US lost their lives due to gun-related injuries. This outnumbered the combat deaths in any of the country’s wars and equaled about half of all the deaths that occurred in all the past US battlefields. Fowler et al. (2015) urge that although the increased killings and injuries associated with gun violence in the US reflect the human toll of gun violence, most of these cases do not make headlines.
Besides the significant number of killings and injuries associated with gun violence, many families in the US must deal with the severe consequences of gun violence. For instance, AAFP (2022) reports that even though figures differ, it is widely accepted that the yearly cost of gun violence to the US economy in terms of medical costs, lost income, daily care/support, and criminal justice costs is around $229 billion. On the same note, Jehan et al. (2015) urge that the economic burden linked with gun violence exceeds $100 billion yearly. The authors added that injuries resulting from gun violence significantly burden the United States health system, amounting to roughly $2.3 billion per year (Jehan et al., 2018). Also, gun-related injuries result in increased mortality and morbidity in the US, fueling public and political health discourse and consuming resources (Avraham et al., 2018).
Following the severe impacts of private gun ownership, the US established regulations to reduce cases of gun violence. On July 30, 1619, the European settlers residing in North America formed the first formal legislative body, which was convened in the Virginia colony. The body’s first General Assembly met in Jamestown, where it pondered for 5 days and established several measures that would be used to govern the feathering colony. One of these enactments was gun control legislation that stipulated that no one should give or sell any powder, piece, shot, or any other arms, either defensive or offensive, to any Indians. If anyone was held a traitor to the colony, they would be hanged immediately after the truth was established without redemption (Spitzer, 2017). The first established gun control law was ineffective, and the number of deaths and injury cases increased. The increasing number of deaths and injuries related to gun violence and the increased cost of firearms-related injuries have led to a strong drive for stricter firearms legislation. The Second Amendment to the US Constitution, which is a part of the Bill of Rights, was passed in 1791 and protected individual rights to own and bear arms. Since then, there has been discussion about the ownership of firearms because of worries about public safety. After the Second Amendment of the US constitution, several other gun control measures have been put in place to reduce gun violence. However, it is yet to be established whether these gun control measures have any impact on violent crimes in the US. Thus, this research paper aims to uncover the effects of gun control measures on the level of violent crimes in the US.
Statement of ProblemWhen all firearm injuries are taken into account, more than 100,000 Americans are injured or killed every year because of firearms, and nonfatal firearm injuries have grown over the past ten years from 22.1 to 26.7 per 100,000 people (Resnick et al., 2017). These injuries place a heavy financial burden on the US healthcare system and the medical community. For instance, the initial hospitalization cost for patients injured by weapons in America is $734.6 million annually; this amount rises to many billions when long-term medical treatment and lost wages are taken into account (Resnick et al., 2017). Resnick et al. (2017) urge that the controversial and politicized topic of gun control legislation has been understudied, especially regarding American gun violence. The authors further add that the scientific evidence related to gun legislation’s effectiveness is scant. This study aims to fill this research gap by exploring the effects of gun control measures on the level of violent crimes in the US. Depending on whether or not there has been a decline in the number of violent crimes following the various gun measures, it will be possible to tell if these measures have been effective or not.
Purpose of the StudyThe primary goal of this study was to explore the effect of gun control measures on the level of violent crimes in the US. Uncovering the effect gun laws have had on the level of violent crimes will help determine whether or not gun control legislation in the US has been effective.
Research Aims and ObjectivesResnick et al. (2017) urge the scientific evidence that relates to the effectiveness of gun legislation is limited. As such, it is not possible to tell whether or not gun control legislations are effective or not. The main objective of this research was to establish whether gun control measures have led to reduced levels of violent crimes in the US.
Research QuestionThe research question guiding this study is as follows.
What is the effect of gun control measures on the level of violent crimes in the US?
LITERATURE REVIEW2.1 IntroductionThis chapter covers the review of the existing literature related to the topic under investigation to give a more comprehensive understanding of the topic under study. The literature review section is divided into various subsections, including the various types of gun violence, the epidemiology of firearm injury, and types of gun control laws.
2.2 Types of Gun Violence2.2.1 HomicideHomicide as a type of gun violence refers to the killing of an individual by another individual with the intention to cause serious injury or death by the use of a firearm (WHO, 2019). However, WHO (2019) reveals that homicide excludes death resulting from war operations and legal intervention. In 2020, 79% of all killings in the US involved a firearm, the greatest percentage in recorded history (Johns Hopkins Center for Gun Violence Solutions, 2022). The availability and lethality of guns cause the high homicide rate in the country. According to the Johns Hopkins Center for Gun Violence Solutions 2022 report, the high-income nations with fewer firearms and stricter gun restrictions have violent assault rates equivalent to those in the United States. However, the U.S. has a firearm homicide rate that is 25 times greater than those in other high-income nations. From 2019 to 202, the US saw a 35% increase in firearm homicides, and the increase was driven mainly by increased accessibility to guns. During this time, communities that were disproportionately affected by systemic inequality, poverty, and structural racism suffered the greatest loss of life as firearm homicide increased (Kuehn, 2022). Usually, firearm homicide is the leading cause of death among Hispanics and non-Hispanic blacks (AAFP, 2022). Research also reveals that most of the victims of firearm homicide are men (AAFP, 2022).
2.2.3 Unintentional Death and InjuryUnintentional injury or death is a term used to describe a situation where death or injury was not caused purposely (EFSGV, 2022). Unintentional injury or death can be inflicted by someone else or self-inflicted. Sometimes unintentional injury and death are terms of accidents implying that nothing could have been done to prevent their occurrence (EFSGV, 2022). Contrary, AAFP (2022) urges that unintentional firearm deaths and injuries are highly preventable. Most of the victims of unintentional death or injury are men. In 2019, 90% of the unintentional gun death and injury victims were men (EFSGV, 2022). In 2019, about 486 Americans lost their lives due to unintentional gun injuries, accounting for 1.2% of the total firearm deaths in the country (EFSGV, 2022). Similar to other types of gun violence, unintentional gun injuries and deaths are most likely to take place in the US compared to other developed nations. Specifically, Americans have four times higher chances of dying from unintentional gun injuries than other developed nations (Hemenway & Solnick, 2015). Research further reveals that half of the unintentional firearm death victims are aged below 35 years (EFSGV, 2022). Usually, children are at a higher risk of unintentional gun injuries and deaths compared to children in other developed nations (Hemenway & Solnick, 2015). There has been, however, a decline in the cases of unintentional firearm injuries and deaths in the US across all ages from 20000 to 2012 (Solnick & Hemenway, 2019).
2.2.3 Violent Crime
Violent crimes entail individuals being harmed or threatened with violence using a firearm. Firearm violent crimes include robbery, assault, and rape and sexual assault. Physical assault entails making a physical attack using a firearm. On the other hand, firearm robbery entails taking property from a place or a person by threat of a firearm. Furthermore, firearm sexual assault entails an individual intentionally penetrating another person’s anus, vagina, or moth with a penis with their consent by the threat of a firearm.
2.2.4 Attempted Suicide and SuicideFirearm suicide is among the main causes of death for Americans. In 2014, approximately 21,000 suicides in the US involved a gun (Mann & Michel, 2016). In 2018, firearm suicides were the third main cause of death in the US among individuals aged 65 years and above (Price & Khubchandani, 2021). According to the authors, it is anticipated that the number of people aged 65 years and above who will die from firearm suicide will increase from 16% in 2018 to 23% in 2060. Price and Khubchandani (2021) warn that unless unique efforts are put in to reverse the current trends, it is expected that a significant increase in the number of elderly firearm suicides will be witnessed as the population increases.
2.2.6 Mass ShootingsMass shooting has been defined in different ways in the literature. Following the 2012 shooting at Sandy Hook Elementary School, Newtown, the US Congress defined a mass shooting as killing at least three people in a single incident (AAFP, 2022). However, this definition did not cover the number of perpetrators, the weapon used, or the place of the incident. On a different note, the Federal Bureau of Investigation (FBI) defines a mass killing as multiple homicides whereby at least four people are killed within one incident in either one or more locations in close geographical proximity (AAFP, 2022). Lin et al. (2018) further define mass shootings as an act of gun violence that leads to four or more fatalities, with the exception of the perpetrator, at the same time and within a relatively short period of time. A total of 702 people died in mass shootings in the US in 2021 (Goolsby et al., 2022). Research reveals that although mass shootings account for a relatively smaller portion of deaths resulting from gun violence, they garner media attention because of the incident’s horrific nature (AAFP, 2022). Recently, mass shootings have been mostly perpetrated by men with the use of semiautomatic weapons, assault-style, and sometimes fully-automatic versions through high-capacity magazine technology (AAFP, 2022).2.3 Epidemiology of Firearm InjuryThe primary public global health concern is injury, rated as the more significant single factor of severe disability and death among teenagers below 45. Hence, there is a considerable variation of trauma penetration through epidemiology worldwide. Roughly 40,000 patients annually in the United States get hospitalized due to gunshot wounds, and most of the patients, about 4,000, die in hospitalized states in the hospitals (Bäckman et al., 2020). Recent research indicates that deaths and injuries in European countries result from firearms due to illegal guns and weapons usage that is increasing in European nations. In comparing the United States with other high-income countries, it is dictated that firearm murder is 20 times more incredible in the United States than in other countries. Even though annual killings have declined in South Africa, the state still experiences firearm-related violence at a higher rate creating a more significant healthcare resources burden. Injury related to firearms is a grave public health problem affecting the United States, representing a solemn economic burden for the state government healthcare facilities, as noted by the research (Bäckman et al., 2020).
Firearm injury is a burden to the United States healthcare economy because it costs more than $80 billion yearly. Firearm-related incidents that include mass shouting in various institutions like schools rationalize the need for imposing preventive measures for curbing and reducing gunshot-related deaths and injuries to numerous netizens (Kaufman & Delgado, 2022). The measures imposed to restrict gunshot-related injuries and deaths entail the participation of more healthcare disciplines, including practical actions from political and social parties, medical firms, and health specialists. The firearm has been rated the leading long-term cause of preventable deaths in the United States by registering up to 7% of premature death in the state. The current study indicates that 50% of robberies, 60% of suicide, and 70% of killings, comprise firearm usage. In 2011, 90 deaths and 210 nonfatal deaths were recorded due to a gunshot from firearm use daily; the leading cause of injury death is motor vehicle crashes, followed by firearms (Kaufman & Delgado, 2022). This death rate indicates that firearm is the second injury cause as it recorded an average of 40,000 deaths annually over the last 40 years. The researchers detected a higher death rate resulting from firearm use in 1993, with a value close to 50,000 deaths, and a lower death rate in 1999, showing 40,000. In 2008, firearms resulted in 60,000 nonfatal injuries and 13,000 killings, whereas in 2011, research indicates that 35,000 firearm deaths and 75,000 nonfatal injuries occurred in the US.
Approximately two hundred and ninety American netizens are estimated to be firearm victims daily. The unintentional, suicidal, and firearm-related killings in the United States are higher than in all the 25 high-income countries indicated by the graph below. Firearm deaths in the United States are estimated to be 18% of the general United States burden for injury, while 6% represent firearm-injured patients receiving treatment at US trauma hearts. In a population of 100,000 individuals in the United States, firearm injuries related deaths range from 11.5 to 13 per 100,000 individuals (De Jager et al., 2020). Research conducted on firearms has primarily focused on firearm-related death end.
Moreover, the nonfatal firearm-related injury burden is approximately four times that of the fatalities. Compared with injured similar trauma cohorts, firearm-injured victims possess high posttraumatic stress disorder rates, high chronic pain rates, and worse long-term quality of life (De Jager et al., 2020). The US has a higher rate of violent crimes, including nonfatal and fatal than most industrialized countries worldwide. Most of the crimes in the United States are committed by armed criminals. Research done in 2014 indicates that 70% of the killings, 45% of thefts, and 25% of serious assaults recognized by the Federal Bureau of Investigation and the police security agency were committed by offenders having guns (Hink et al., 2019).
Research conducted in 2017 shows 39,900 firearm death-related issues in the United States. The research summarizes this result into 2% legal interventions, 2% unintentional injuries, 38% indicated killings, and 62% indicated to be suicidal issues (2017 data retrieved from CDC and Web-Based Injury Statistics Reporting and Query system) (Price & Khubchandani, 2019). Recently, mass shooting has been increasing in frequency, garnering more attention by representing a more significant death percentage. According to the graph in the research, higher death peaks were noted in the early 1990s, and the research indicates that the peaked death rate has increased constantly in the past three years. Even though there is a lack of accurate and adequate data systems defining the nonfatal rate of firearm injuries in the United States, the representation of firearm injuries is 5% in most traumatic centers. Based on the National Traumatic Databank analysis, firearm injuries are shown to be 5% resulting from the high fatality rate case. Therefore, the death associated with firearms in the United States population is comparable to motor vehicle falls and crashes. According to research on individuals with grave injuries, the case rate of fatality for motor vehicle crashes has decreased in the past ten years compared to firearm cases.
Additionally, individuals hospitalized due to firearm injury have increased gradually. Research indicates that suicidal cases resulting from firearms are represented by 90% fatality rates, which is significantly greater than all the other instruments. Suicidal firearms unreasonably include older white males found in rural areas, while the firearm killings excessively affect the younger generation, usually men in urban setups. Unintentional injury unreasonably impacts the kids with firearm access; ninety-five percent of the kids killed by gun usage in high-economy countries are found in the United States. Research conducted in 2016 indicates that approximately 300,000 individuals got killed from an injury that resulted from a firearm (Hink et al., 2019).
Source: (Hink et al., 2019)
Gun Control Legislation in the USNational Firearms Act (NFA) (1934) National Firearms Act (NFA) (1934) was the US’s first national gun control legislation. The 73rd US Congress enacted NFA on July 26, 1934. NFA covered only two types of guns: short-barrel rifles and machine guns. NFA imposed a tax on the production and distribution of these firearms and obligated the registration of Title II weapons.
2.4.2 Federal Firearms Act (FFA) (1938)
The US Congress enacted the Federal Firearms Act (FFA) in 1938. The FFA levied a federal license prerequisite on gun importers, producers, and individuals in the firearms-selling business (Congressional Research Service, 2019). The FFA also bans transferring guns to specific groups of people, such as convicted criminals.
2.4.2 Omnibus Crime Control and Safe Streets Act of 1968
The legislation was designed to help the local governments and the state to reduce crime incidences and increase the fairness, effectiveness, and coordination of the criminal justice system and law implementation at all three government levels. This legislation augmented the minimum age for buying handguns from 18 to 21 years. It also banned the trading of firearms within states.
2.4.3 Gun Control Act of 1968 (GCA)
The 1968 law made it mandatory to get a federal license to produce or trade guns and made it unlawful for anybody who is not an authorized dealer, importer, manufacturer, or collector to transport firearms over state lines. It also restricted the importation of cheap guns and made it illegal to intentionally transfer permits to individuals or organizations labeled as potentially dangerous or irresponsible.
2.4.4 Firearm Owners Protection Act of 1986This legislation was designed to adjust the Gun Control Act of 1968 to redefine “gun dealer,” eliminating those who only engage in occasional repairs and sales. For this legislation, transactions involving fully automatic guns must have ATF approval. The law also prohibited private individuals from purchasing fully automatic rifles produced after the law’s signing date. It also bans the government from keeping a state database of gun owners (Straight, 2021).
2.4.5 Undetectable Firearms Act of 1988The legislation alters the federal criminal code to make it illegal to import, manufacture, ship, possess, sell, deliver, transfer, or receive any firearm; which Security Exemplar-specific walk-through metal detectors are not as sensitive to or of which key component when scanned by the standard airport x-ray equipment, does not provide a picture that faithfully represents the component’s shape.
2.4.6 Gun-Free School Zones Act of 1990The legislation changes the Federal criminal code to enforce criminal fines for the discharge or possession of a gun in public secondary or elementary school zone exemptions for authorized or licensed programs or individuals. The Act urges local, state, and federal authorities to put signs around school zones to warn individuals that carrying weapons in these areas is illegal.
2.4.7 Brady Handgun Violence Prevention Act of 1993The legislation was endorsed on November 30, 1993. The legislation modified the Gun Control Act of 1968 (Kessel, 2021). The Brady Act mandated a five-day waiting time as an interim measure before an authorized manufacturer, importer or dealer may sell, distribute, or transfer a firearm to a person without valid authorization. Depending on the venue and seller, it also demands background checks on most gun buyers.
2.4.8 Federal Assault Weapons Ban (1994–2004)The Act was endorsed as part of the 1994 Act for Violent Crime Control and Law Enforcement. The bans were lifted on September 13, 2004. The legislation prohibited the transfer, possession, or manufacture of semiautomatic assault weapons. The Act outlawed semiautomatic firearms resembling assault rifles and magazines capable of carrying many bullets.
2.4.9 Law Enforcement Officers Safety Act of 2004The legislation amends the Federal criminal code to make it legal for current and former law enforcement personnel to carry hidden firearms in any part of the US, regardless of the laws of individual states or municipalities. Still, there should be certain exemptions (Treml, 2021).
2.4.10 Protection of Lawful Commerce in Arms Act of 2005The legislation eliminated the possibility of producers of weapons and authorized dealers being held accountable for criminal acts committed using firearms that they have produced. However, firearm dealers and manufacturers may still be allegedly responsible for breach of contract, damages occurring from faulty goods, criminal misbehavior, and other activities for which they may be openly accountable. Also, they can be said to be responsible for negligent entrustment if they are aware that a firearm will be used in a crime.
2.4.11 Bipartisan Safer Communities Act of 2022The legislation increases the number of vendors who must have an FFL, finances state crisis intervention programs, toughens the penalties for weapons trafficking and straw purchases, and puts an end to the “boyfriend loophole” for underage buyers.
METHODOLOGY3.1 IntroductionThis methodology section gives an overview of the methodological stance adopted in this research. Subsections covered under the methodology section include research philosophy, research design, search strategy, data collection procedures, and data analysis procedures.
3.2 Research PhilosophyAn interpretivism research philosophy has been utilized in this study to explore the selected literature to create meaning and address the research question. Meta-synthesis and a full systematic review have been carried out to uncover the effects of gun control measures on the level of violent crimes in the US. The study findings are used to make recommendations on whether stricter gun control legislation is required.
3.3 Research DesignA literature-based design was adopted for this study. Literature analysis is used as a method to support arguments concerning what an investigator does not know or already knows about a phenomenon (Newman & Gough, 2020). A literature-based research design was suitable for this study because it allowed the researcher to draw data from multiple data sources to address the research question. The researcher undertook a meta-analysis to define how gun control measures have impacted the level of violent crimes in the US. A systematic literature review is a research process, and approach researchers use to identify and critically appraise relevant research articles, gather data, and analyze them (Snyder, 2019). A meta-analysis combines results from multiple studies to compare and identify patterns, differences, or relationships that occur within the context of other studies examining a similar topic (Snyder, 2019). A detailed description of the search strategy employed and the selection criteria are provided below.
3.4 Search Strategy and Selection CriteriaIn this study, the researcher conducted an in-depth investigation using credible database resources such as Google Scholar, ProQuest, Science Direct, EBSCOHost, Academic Search Complete, and Scopus to determine the most appropriate articles for review. Some of the search terms that were used to find the articles reviewed in this study included “examples of gun control measures in the US,” “examples and causes of violent crimes in the US,” “level of violence crimes in the US,” and “the impact of gun control measures on the level of violence crimes in the US.” While searching for the most relevant articles, Boolean operators, including AND, NOT, OR, and AND NOT, were utilized as conjunctions to exclude or combine keywords to generate more productive and focused results. The researchers adopted an ancestry search to identify the inclusion sources, which required finding and incorporating all necessary footnote references and citations in the review. Lastly, the researcher established inclusion and exclusion criteria to choose the study’s most credible and relevant data sources. These criteria guaranteed that the sources selected were readily available, appropriate, and reputable. Criteria for what should be included and excluded are outlined below.
3.5 Inclusion Criteria All the studies included in this review investigated the effects of gun control measures on the leve
Investigating the Effects of Consumer’s Lifestyles on Their Brand
Investigating the Effects of Consumer’s Lifestyles on Their Brand Preferences: A Case of Macau
Author’s Name
Institutional Affiliation
Investigating the Effects of Consumer’s Lifestyles on Their Brand Preferences: A Case of Macau
1.0 Introduction
1.1 Context Overview
Macau’s luxury goods market has been growing dramatically in recent years, evinced by the growing numbers of nationalist Chinese shoppers who prefer spending in this market. So, luxury goods consumption remains an essential part of modern lifestyles in this emerging Asian market. Bian and Forsythe (2012) affirm this assertion by suggesting that luxury brands, which represent considerable portions of consumer product sales globally, are no longer limited to developed Western countries but have permeated new rich markets in Eastern economies. Luxury goods’ consumption and luxury retailing have continued to enjoy dynamic and steady growth even during times of economic downturn such as the recent one caused by the effects of the COVID-19 pandemic (Deloitte, 2020; Zhang, 2017). This indicates that the market will continue to attract many brands and actors due to its lucrativeness. Even so, proper and adequate comprehension of luxury consumption requires going beyond market growth dynamics to understanding consumer purchasing behaviours in this market and their brand preferences derived from their lifestyles.
1.2 Research Background
Contemporary research indicates that consumer lifestyles are constantly changing due to ongoing global cultural shifts, the continual evolution of the demographic mix, and rapid technological advances that shape consumers’ values and habits (Bian & Forsythe, 2012; Sheth, 2020). These changes are giving rise to new consumption trends embedded in consumers’ lifestyles, eventually shaping their preferences and choices for luxury commodities. Essentially, the importance of consumer lifestyle and its effects on purchasing choices and brand preferences is well documented in the literature. For instance, Cătălin and Andreea (2014) advocate that lifestyle has a significant impact on both consumer behaviour and clients’ brand preferences. Salajeghe and Mousavi (2012) further suggest that lifestyle is a strong source of identity and its associated consumption preferences. This means that people’s lifestyles are critical identifiers of their identity, which influences their consumption choices. Based on these researchers’ stance, lifestyle defines people’s distinguishing identity and their consumption motivations, eventually shaping their luxury brand preferences. This observation corroborates Cătălin and Andreea (2014) that consumers’ personal lifestyles are a means of the self-expression of their social identity and self-identity, expressed through the choices consumers make, including their purchasing choices.
From another perspective, Kashani et al. (2017) established that consumers’ lifestyles and their attitude functions directly influence individuals’ emotional attachment to specific luxury brands. In another study, Mohiuddin (2018) furthered the importance of lifestyle in determining brand preferences by arguing that lifestyle drives consumers’ decision making, especially among female consumers. This scholar submits that lifestyle, established by consumers’ beliefs, attitudes, and mindsets, significantly impacts the decisions that go into their professional and personal lives. Further research work by Ebrahim et al. (2016) confirms that lifestyle experiential aspects of specific brands directly influence client brand experiences, which eventually drive their brand preferences. These authors advocated that positive brand experiences stored in consumers’ memories are critical determinants of their repurchase intentions, particularly for luxury products.
Haryanto et al. (2019) affirms that various dimensions of lifestyle influence clients’ selection of foreign brands differently from their selection of local brands. Among these dimensions, those found to have significant correlations with consumers’ brand preferences include fashion consciousness, health consciousness, attentiveness lifestyle, leadership lifestyles, and extroversion lifestyles. In a separate study, Husnain and Akhtar (2015) advanced the investigation of lifestyle dimensions that have been found to directly impact consumer brand preferences for luxury products. The three dimensions addressed include price consciousness, need for uniqueness, and status consciousness. According to these researchers, these three variables or dimensions influence buying behaviours regarding genuine brands versus counterfeits brands.
1.3 Statement of the Problem
While studies on the impact of lifestyle on brand preferences for luxury commodities is relatively plenty, the number of lifestyle studies focusing on Asian markets are overly scarce. Additionally, those that have attempted to explain the role of lifestyle in shaping brand preferences in luxury consumption have concentrated in developed Asian countries such as China, thereby making it difficult to find studies on a developing territories such as Macau. The current study bridges this gap by contributing knowledge about the impact of lifestyle on people’s brand preferences in luxury clothing consumption in Macau. The study adopts a similar approach as adopted by Husnain and Akhtar (2015) in exploring the lifestyle-related variables of price consciousness, status consciousness, and the need for uniqueness in determining brand preferences for luxury clothing brands versus regular clothing brands within the Macau luxury market.
1.4 Study Scope and Significance
The study is empirical in nature, involving the use of the survey questionnaire method to gather and synthesize data about these three lifestyle dimensions as they relate to luxury clothing brands in Macau. The study will be valuable because it will generate insights that luxury retailers can leverage to link up their luxury business investments to consumers’ lifestyle features to enhance market productivity and guarantee optimal profitability. Additionally, the study will provide unique perspectives in comprehending lifestyle-driven customer needs and consumer brand preferences.
1.5 Research Objectives
To discuss the dimensions of lifestyle and their impact on brand preferences for luxury products.
To examine the effect of status consciousness on consumers’ brand preferences for branded luxury clothing in Macau.
To explore the impact of price consciousness on brand preferences for luxury clothing among Macau consumers.
To study how the need for uniqueness positively influences brand preferences for luxury clothing among Macau consumers.
2.0 Literature Review
Understanding consumers’ brand preferences within the context of luxury commodities constitute an indispensable step towards comprehending their brand choice behavior (Ebrahim et al., 2016), actual purchasing behavior (Kwok et al., 2006; Zhang, 2017), and consumption dispositions (Cătălin & Andreea, 2014; Haryanto et al., 2019). Essentially, brand preferences for luxury brands have continued to receive great attention from marketing scholars. However, a significant portion of these researchers have limited their focus on luxury commodities’ utility maximization (Bronnenberg et al., 2012; Ebrahim et al., 2016; Heilman et al., 2000). A research model that explores brand preferences from the perspective of consumer lifestyle, its dimensions (Husnain & Akhtar, 2015), and their impact in shaping brand preferences is valuable in expanding the scope of scholarly inquiry in this area.
2.1 The Evolution of Brand Preferences within a Lifestyle Context
Scholars began exploring brand preferences across several products in the late 1960s and early 1970s. The conclusive outcomes of most of these early studies (Bass & Talarzyk, 1972; Bass & Wilkie, 1973; Churchill, 1972; Sheth, 1968; Sheth & Talarzyk, 1972) demonstrate close correlations between brand preferences and consumers’ salient attitudes and beliefs embedded in their lifestyles. When these attitudes and behaviors are activated at specific times, they drive their purchasing behaviors towards specific brands, thereby defining their preferences for (Husnain & Akhtar, 2015; Kwok et al., 2006; Mohiuddin, 2018; Zhang, 2017) and emotional attachment (Bian & Forsythe, 2012; Kashani et al., 2017; Miao et al., 2019) to those brands.
With time, researchers have dedicated efforts to explore the evolution of brand preferences entrenched in lifestyle, extending the understanding of this phenomenon within luxury brands’ contexts. In an earlier study, Heilman et al. (2000) examined the evolution of brand preferences and consumers’ responses to marketing activities for new clients. Their findings established that brand preferences among new consumers vary depending on learning (or brand information collection) and purchasing experience. With more learning and augmented purchasing experience, consumers garner more insights into the brand within the confines of their lifestyle. This increases their loyalty towards the brand and their probability of choosing the brand, even if it was inferior at the beginning of the purchasing experience.
The outcomes from Heilman et al. (2000) were corroborated sixteen years later by the findings from a study by Ebrahim et al. (2016), who affirmed that brand experience shapes consumer loyalty. Eventually, this influences their repurchasing intension, which has a direct impact on their brand preferences. Sharing the same sentiments, Husnain and Akhtar (2015) contend that brand preference evolution hinges on brand loyalty, giving insights into market segmentation for luxury brands. In another study, Bronnenberg et al. (2012) utilized data on consumers’ life histories and their purchases of packaged consumer goods to examine the long-term evolution of brand preferences. They discovered that brand preferences develop and evolve endogenously as a function of customers’ life histories and remain highly persistent components of their lifestyle once they are formed. In their study, Cătălin and Andreea (2014) suggested that brand preferences evolve as a function of consumers’ social identity and personal identity reflected in their lifestyle.
2.2 Impact of Lifestyle on Brand Preferences
Scholarly literature on the evolving area of brand preferences has expanded to include the role of consumers’ lifestyle in shaping their purchasing behaviors (Mohiuddin, 2018; Salajeghe & Mousavi, 2012). Essentially, research on the influence of lifestyle on luxury products’ brand preferences is plenty. While studying the association between consumers’ lifestyle and individual preferences in choosing foreign or domestic brands, Haryanto et al. (2019) described lifestyle as characterizing the orientation of persons who create life’s structure based on their activities, opinions, interests, and demographic characteristics. These authors define lifestyle as the value inherent in each individual expressed in different behaviors depicted in everyday life. From another perspective, Naim et al. (2019) consider lifestyle as a combination of indices such as demographic characteristics, social class, personality, excitements, emotions, macro-cultures, motivations, values, family position, previous experiences, and culture, which impact consumption behaviors, decisions, preferences, and tendencies.
Lifestyle and its various dimensions impact brand preferences for luxury products in various ways well-established in research. For instance, Salajeghe and Mousavi (2012) sustain that an individual’s lifestyle integrates that person’s characteristics, previous experience, and current position or attitudes towards a brand, all of which directly impact all aspects of their consumption behavior. According to Mohiuddin (2018), lifestyle affects brand preferences from the perspective that it defines their purchasing decisions and consumption choices. Specifically, this author submits that lifestyle depends on people’s standards of living, which is a factor determinant of their purchasing power, thus their consumption choices. Additionally, lifestyle reflects their beliefs, mindsets, attitudes, and thoughts towards brands, significantly impacting theirs purchasing decisions (Mohiuddin, 2018). Corroborating these sentiments, Cătălin and Andreea (2014) and Zhang (2017) hold that each person’s lifestyle reflects their aesthetic style, values, life goals, visions, and symbolic meaning, brand quality perceptions, all of which have a great impact on brand preferences.
In their study, Kashani et al. (2017) admit that lifestyle drives brand preference by defining the level of emotional attachment that consumers develop towards luxury brands. These scholars suggest that consumers’ attitudes mediate the relationship between their lifestyle and their emotional attachment to luxury goods. Accordingly, they affirmed that a lifestyle characterized by value-oriented attitudes towards luxury brands augment consumers’ emotional attachment to those brands, translating to high preferences for the brands. Husnain and Akhtar (2015), who argue that customers’ preferences largely depend on consumers’ lifestyle, sustain that the phenomenon impacts purchasers’ luxury brand preferences by forecasting their needs. Precisely, they believe that lifestyle is a valuable element in predicting luxury consumers’ needs and designing segmentation, positioning, and marketing strategies to meet these needs in a way aligning with the desired lifestyle. Zhang (2017) agrees with this observation, suggesting that the lifestyle projected by luxury brands and their respective marketing messages reflect the brand image attached to those brands, which ultimately dictate consumers’ attitudes and preferences towards them. Finally, Cătălin and Andreea (2014) believe that lifestyle is a rational instrument for creating a robust sense of self that resonates and aligns with consumers’ social and personal identities, which they express via their brand choices and preferences.
2.3 Dimensions of Lifestyle Influencing Luxury Brand Preferences
Researchers have identified more than ten dimensions of lifestyle that influence brand preferences, in general. According to Haryanto et al. (2019), the thirteen dimensions of lifestyle include fashion consciousness, cost consciousness, craftsmanship, health consciousness, adventure, community consciousness, family orientations, leadership, practicality, extroversion, attention, casualness, and interest in sports. In the context of genuine versus counterfeit brands. Husnain and Akhtar (2015) identified three additional dimensions: price consciousness, status consciousness, and need for uniqueness. According to these researchers, the attainment of strong brand preferences entails taking account of the brand-customer relationships and brand perceptions, establishing sound brand positioning, and linking up these considerations with the dimensions of lifestyle that shape luxury goods’ consumption. The three dimensions identified by Husnain and Akhtar (2015) form the conceptual framework applied for the current research study.
2.3.1 Status Consciousness and Luxury Clothing Brands
Researchers Husnain and Akhtar (2015) have defined status consciousness as the motivational process by which individuals strive to improve and enhance their social repute or position by deliberately engaging in conspicuous consumption of consumer goods that symbolize or signal eminence for them and their surroundings. Millan and Mittal (2017) use the term “status concern” to refer to status consciousness, suggesting that it describes the value individuals place on attaining higher societal and community status. Status-conscious or status-concerned consumers are highly predisposed to participating in status consumption of luxury clothing brands because such brands are regarded as emblems of social class, prestigious identity, and grander eminence (Cham et al., 2018). Reinforcing this observation, Chan (2015) and Millan and Mittal (2017) affirm that status-conscious consumers will always buy luxury goods (luxury clothing) to fulfill their need for status because they are highly mindful of the status they currently have and are motivated to display and guard it.
Status consciousness is a mentally conceived construct that captures individuals’ desires to achieve, improve, and maintain a respectable standing within their status hierarchies (Millan & Mittal, 2017). Within such a psychological makeup, consumers find themselves continually motivated to become a part of a certain socially prestigious or desirable class in society (Chan, 2015) where they achieve notability among their reference groups to be regarded with respect as influential and successful. According to Husnain and Akhtar (2015), this desire drives the decisions they make concerning the types of luxury products to purchase, with such decisions hinging principally on whether or not these products’ characteristics are commensurate with maintaining their prestigious status. Essentially, this translates to the inference that luxury brands (such as luxury clothing) constitute an essential and potent means of communicating and displaying individuals’ facets of identity and status (Millan & Mittal, 2017). So, high status consciousness is a prerequisite for engendering brand preferences for luxury clothing because these brands serve to express their prestige (Chan, 2015). Consistent with Husnain and Akhtar (2015), status-conscious consumers will demonstrate lesser acceptance for regular clothing than luxury clothing. Based on this literature, the first hypothesis for this study is:
H1: Status consciousness positively affects Macau consumers’ preferences for branded luxury clothing and has no effect on preferences for regular clothing.
2.3.2 Price consciousness and Luxury Clothing Brands
Husnain and Akhtar (2015) and Khurram et al. (2018) collectively define price consciousness as the degree to which consumers focus their attention exclusively on paying low prices for what they purchase. In other words, it entails their unwillingness to pay higher prices for a particular product. In their research, Cham et al. (2018) suggest that price consciousness constitute a factor that moderately influence consumers’ purchasing intentions and interests when buying clothing. The study by Gaston-Breton (2011) also acknowledge the importance of price consciousness in shaping brand preferences, suggesting that it plays a mediating role in driving the persuasiveness of 99-ending prices. Specifically, these scholars use linear regressions to confirm that price-conscious consumers demonstrate strong sensitivity and preferences for brands with 99-ending prices, particularly new products. Husnain and Akhtar (2015) affirm that for price-conscious customers, the essence of seeking the lowest or the best prices for brands is to get perceived optimal value for their money.
The mediating role of price consciousness means that before buying even the smallest item, price-conscious consumers will always check the prices of all related products and compare these prices before making their purchases. So, they are more predisposed to engage in price comparisons before purchasing than their less price-conscious counterparts (Khurram et al., 2018). Based on this knowledge, marketers try to infuse the perception that certain brands have greater value for reasonably lower prices than competitors’ to augment brand recognition and purchasing chances (Gaston-Breton, 2011; Khurram et al., 2018). Unfortunately, focusing overly on such aspects of price consciousness has the potential of causing consumers to buy regular products unknowingly, thinking that they are luxury goods (Husnain & Akhtar, 2015). Confirming this assertion, Kundi and Mughal (2021) recently affirmed that price sensitivity is an important mediating variable in the purchase of counterfeit brands. This indicates why price-conscious consumers tend to show positive attitudes toward counterfeit products because they will consider these brands as giving them the value for their money. This literature leads to the second hypothesis for this study:
H2: Price consciousness positively affects brand preferences for regular clothing and negatively affects brand preferences for luxury clothing among Macau consumers.
2.3.3 Need for Uniqueness and Luxury Clothing Brands
This dimension of lifestyle has been comprehensively addressed in literature, with Husnain and Akhtar (2015) defining it as the individualistic desire to look different from the rest of society by consuming brand types that augment one’s self- and social image. According to Zhang (2017), consumers’ need for uniqueness constitute a personality trait characterized by the need to exhibit individuality by acquiring, displaying, and utilizing distinctive consumer goods typical of rarity and extraordinariness. For this reason, the distinctive image and scarcity of value associated with luxury brands make them ideal to meet consumers’ need for uniqueness. Corroborating this point, Cham et al. (2018) and Chan (2015) assert that consumers who crave for the need for uniqueness will generally be motivated to internally maintain this sense of uniqueness, sustain interpersonal differences, and externally project the unique self onto others using the ‘wow’ and ‘cool’ effects derived from luxury commodities, specifically luxury clothing.
In the contemporary luxury domain, the need for uniqueness as a lifestyle dimension has transformed into a universal personality that drives status consumption for modern consumers. This implies that the need for uniqueness works hand-in-hand with status consciousness in shaping brand perceptions and preferences for luxury products and the associated purchasing intentions (Chan, 2015). In this domain, consumers are curious of trying new things provided they feel that these items help them display a unique self-image and interpersonal difference with the rest of society. They tend to depict high inquisitiveness for new brands while constantly anticipating the emergence of self-differentiating and upscale consumer items (Cham et al., 2018). Such curiosity comes along with risk-taking and novelty-seeking behaviours that augment their chances of falling into the trap of buying counterfeit luxury products (Husnain & Akhtar, 2015). As per this literature, the third hypothesis for this study is:
H3: The need for uniqueness positively affects brand preferences for luxury clothing and has no effect on preferences for regular clothing.
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